Operating Budget

Fiscal Year 2022

The Fiscal Year 2022 Operating Budget was approved by the Case Western Reserve University Board of Trustees on June 4, 2021.

This document may also be found at: www.case.edu/finance/financial-information

andwww.case.edu/financialplanning/operating-budget

Published by:Office of Budget and Financial Planning

Case Western Reserve University

© 2021 Case Western Reserve University

4 C ASE W ESTER N RES ERVE UNIVERS IT Y OPERATING BUDGET P R E F A C E

PREFACE — 2022 OPERATING BUDGETCase Western Reserve University (the “University”) has traditionally operated under a decentralized structure with the philosophy that each management center is responsible for the planning and implementation of academic programs, revenue development and expense management; significantly following a Responsibility Center Management (RCM) philosophy. Beginning in 2021, direct cost management was emphasized with a historical cost improvement of $76.8 M included in the 2021 Operating Budget. This change enabled additional improvements in the 2022 Operating Budget.

M E T H O D O L O G Y M O D I F I C AT I O N — D I R E C T E X P E N S E M A N A G E M E N T F O R S T R AT E G I C I N V E S T M E N TThe 2022 Operating Budget was constructed using Unrestricted Direct Expense as the primary budget guideline for planning purposes. Prior to 2021, Operating Margin was the primary budget guideline. The result is a guideline target based on Unrestricted Direct Expense as opposed to total revenue less total expense.

Further, unrestricted expense guidelines were developed using the 2021 budget as the base guideline; rigorously controlling increases in the guideline for the 2022 Operating Budget. Guideline increases in Unrestricted Direct Expense were largely salary related with the exception of incremental Unrestricted Revenue sources. The result is a relatively lower Unrestricted Direct Expense budget for 2021, allowing Operating Margin to flow to each Management Center’s Retained Surplus.

Lastly, the budget preparation process focused attention on available Retained Surplus within each Management Center due to an anticipated increase in the amount of Retained Surplus available. Retained Surplus has traditionally been used for strategic investment within each management center, as authorized by the Provost and Chief Financial Officer of the University. This policy has been further developed in the 2022 budget process. Management Centers prepared tentative strategic investment initiatives during the 2022 budget process. The result of this development is increased planning and communication.

The overall objectives of the above modifications are reflected below: • Control unrestricted direct expense increase to provide additional funding of the University’s Strategic Plan and management center strategic investment

• The ability to provide strategic investment funding for the Management Centers and to ensure strategic investment is aligned across the University

• Establish a guideline target for management centers that reflects the activity controlled within each management center

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 5T A B L E O F C O N T E N T S

TABLE OF CONTENTS S TAT E M E N T O F O P E R AT I O N S Key Facts and Assumptions 6 Consolidated Statement of Operations 7 Total Revenue & Notes 8-9 Total Expense & Notes 10-11 Summary by Management Center 12-13 M A N A G E M E N T C E N T E R O P E R AT I N G B U D G E T S College of Arts and Sciences (CAS) 14 Case School of Engineering (CSE) 15 Weatherhead School of Management (WSOM) 16 Mandel School of Applied Social Sciences (MSASS) 17 School of Law (LAW) 18 School of Dental Medicine (DENT) 19 Frances Payne Bolton School of Nursing (NURS) 20 School of Medicine (CSOM) 21 University General (UGEN) 22 F I S C A L Y E A R 2 0 2 2 O P E R AT I N G B U D G E T University Operating Margin Historical Trend 23 University Surplus/(Deficit) Historical Trend 24 Significant Revenue and Expense Movements 25 A P P E N D I C E S Appendix A — Student Enrollment 26 Appendix B — Tuition, Board and Room Rates 27 Appendix C — Revenue and Expense Allocation Practices 29 Appendix D — Additional Information 39

6 C ASE W ESTER N RES ERVE UNIVERS IT Y OPERATING BUDGET K E Y F A C T S A N D A S S U M P T I O N S

KEY FACTS AND ASSUMPTIONS 2021 2022 % Variance toIn thousands of dollars Budget Budget 2021 Budget

U N D E R G R A D U AT E E N R O L L M E N T (Fall semester, full-time) Continuing Students 3,842 4,024 4.70% Entering Class 1,220 1,250 2.50% TOTAL UNDERGRADUATE ENROLLMENT 5,062 5,274 4.20%

U N D E R G R A D U AT E T U I T I O N Tuition Rate (In dollars) $52,448 $54,020 3.00% Funded Discount Rate 3.60% 3.40% Unfunded Discount Rate 46.80% 47.10% TOTAL DISCOUNT RATE 50.40% 50.50%

E N D O W M E N T Endowment Pool Spending (current & prior year) $82,529 $83,373 1.00% Outside Trust Spending 17,306 15,571 -10.00% TOTAL ENDOWMENT REVENUE $99,835 $98,944 -0.90%

R E S E A R C H & T R A I N I N G ( R & T ) R&T Revenue $318,413 $322,682 1.30%R E S T R I C T E D G I F T S Restricted Gift Revenue $45,359 $46,947 3.50%O V E R H E A D R E C O V E R Y Overhead Recovery Revenue $75,825 $75,809 -0.00% TOTAL RESEARCH & RESTRICTED REVENUE $439,597 $445,438 1.30%

O V E R H E A D R E C O V E R Y Federal Indirect Cost Rate 61.00% 61.00% 0.00% F R I N G E Non-federal Fringe Benefit Rate 30.00% 33.00% 10.00% Federal Fringe Benefit Rate 30.00% 29.00% -3.30% Term Fringe Benefit Rate 18.50% 17.00% -8.10%

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 7S T A T E M E N T O F O P E R A T I O N S

CONSOLIDATED STATEMENT OF OPERATIONSFiscal Year 2022 Budget $ Increase/ 2020 2021 2022 (Decrease) % VarianceIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $250,255 $253,763 $271,478 $17,715 7.00% Summer 18,573 20,372 19,642 (730) -3.60% Professional 162,335 149,403 172,260 22,857 15.30% Graduate 63,258 58,563 63,941 5,738 9.20% Fees 3,782 3,717 3,739 22 0.60%TOTAL TUITION 498,203 485,818 531,060 45,242 9.30%ENDOWMENT Restricted Endowment 57,147 59,001 58,626 (375) -0.60% Unrestricted Endowment 36,487 40,834 40,318 (516) -1.30%TOTAL ENDOWMENT 93,634 99,835 98,944 (891) -0.9%OTHER REVENUE Research & Training 331,053 318,413 322,682 4,269 1.30% Restricted Gifts 53,628 45,359 46,947 1,588 3.50% Overhead Recovery 76,847 75,825 75,809 (16) 0.00% Unrestricted Gifts 3,799 3,532 4,231 699 19.80% State Support 2,492 1,590 1,575 (15) -0.90% Organized Activities 9,312 7,628 10,200 2,572 33.70% Other Income 60,130 33,544 39,077 5,533 16.50% Auxiliaries 67,997 69,936 72,688 2,752 3.90%TOTAL OTHER REVENUE 605,258 555,827 573,209 17,382 3.10%TOTAL REVENUE $1,197,095 $1,141,480 $1,203,213 $61,733 5.40% E X P E N S E DIRECT EXPENSE Faculty Salaries $155,435 $153,560 $158,684 $5,124 3.30% Other Salaries 105,246 104,101 107,269 3,168 3.00% TOTAL SALARIES 260,681 257,661 265,953 8,292 3.20% Fringe 82,463 76,325 83,876 7,551 9.90% Student Salaries 29,853 27,912 31,660 3,748 13.40% Student Aid 201,081 215,621 227,704 12,083 5.60% Non-salary 331,487 297,077 302,547 5,470 1.80%TOTAL DIRECT EXPENSE 902,544 874,596 911,740 37,144 4.20%Restricted Direct Expense 445,527 422,773 428,255 5,482 1.30%Unrestricted Direct Expense 457,017 451,823 483,485 31,662 7.00%INDIRECT EXPENSE Library 15,553 13,336 14,306 970 7.30% Student Services 32,978 28,573 29,923 1,350 4.70% Plant 71,266 66,803 68,318 1,515 2.30% Information Services 31,946 28,106 29,427 1,321 4.70% University Services 73,792 59,641 74,380 14,739 24.70%TOTAL INDIRECT EXPENSE 225,535 196,459 216,354 19,895 10.10% Auxiliaries 60,212 61,630 64,536 2,906 4.70%TOTAL EXPENSE $1,195,338 $1,132,685 $1,192,630 $59,945 5.30% OPERATING MARGIN $1,757 $8,795 $10,583 $1,788 20.30%Undergraduate Tuition Subvention - - - - Use of Retained Surplus/Encumbered Funds 388 1,977 2,098 121 SURPLUS/(DEFICIT) $2,145 $10,772 $12,681 $1,909

8 C ASE W ESTER N RES ERVE UNIVERS IT Y OPERATING BUDGET R E V E N U E D E T A I L

TOTAL REVENUE Fiscal Year 2022 Budget $ Increase/ 2020 2021 2022 (Decrease) % VarianceIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $250,255 $253,763 $271,478 $17,715 7.00% Summer 18,573 20,372 19,642 (730) -3.60% Professional 162,335 149,403 172,260 22,857 15.30% Graduate 63,258 58,563 63,941 5,378 9.20% Fees 3,782 3,717 3,739 22 0.60%TOTAL TUITION 498,203 485,818 531,060 45,242 9.30%ENDOWMENT Restricted Endowment 57,147 59,001 58,626 (375) -0.60% Unrestricted Endowment 36,487 40,834 40,318 (516) -1.30%TOTAL ENDOWMENT 93,634 99,835 98,944 (891) -0.90%OTHER REVENUE Research & Training 331,053 318,413 322,682 4,269 1.30% Restricted Gifts 53,628 45,359 46,947 1,588 3.50% Overhead Recovery 76,847 75,825 75,809 (16) 0.00% Unrestricted Gifts 3,799 3,532 4,231 699 19.80% State Support 2,492 1,590 1,575 (15) -0.90% Organized Activities 9,312 7,628 10,200 2,572 33.70% Other Income 60,130 33,544 39,077 5,533 16.50% Auxiliaries 67,997 69,936 72,688 2,752 3.90%TOTAL OTHER REVENUE 605,258 555,827 573,209 17,382 3.10%TOTAL REVENUE $1,197,095 $1,141,480 $1,203,213 $61,733 5.40%

REVENUE COMPARISON BY YEAR

443,228 460,527 479,951 498,203 485,818 531,060

84,820 89,706 95,103 93,634 99,835 98,944

437,751 453,905

464,261 461,528 439,597 445,438

141,489 141,041

145,863 143,730 116,230

127,771

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

2017Actual

2018Actual

2019Actual

2020Actual

2021Budget

2022Budget

Other Revenue

R&T, RestrictedGifts, OverheadRecovery

Endowment

Tuition

In thousands of dollars

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 9R E V E N U E D E T A I L

T U I T I O NUndergraduate Tuition Increased $17.7 M or 7.0% as a result of a 3.0% tuition rate increase and a 4.2% enrollment increase. Summer Tuition Decreased ($0.7 M) or -3.6% due to lower enrollment in CAS, CSE and MSASS. Partially offset by higher enrollment in WSOM, LAW, DENT, NURS and CSOM.Professional Tuition Increased $22.9 M or 15.3% due to higher enrollment/price in CSE, WSOM, MSASS, LAW, DENT and CSOM. Partially offset by lower enrollment in NURS. Graduate Tuition Increased $5.4 M or 9.2% due to higher enrollment/price in CAS, CSE, NURS and CSOM. Partially offset by lower enrollment in WSOM.

E N D O W M E N T — Endowment payout rate of 4.70% of the endowment pool balance as of June 30, 2020. Restricted Endowment Decreased ($0.4 M) or -0.6% as a result of lower income in CAS, WSOM and LAW. Partially offset by higher income in UGEN.Unrestricted Endowment Decreased ($0.5 M) or -1.3% as a result of lower income in CSOM.

O T H E R R E V E N U EResearch & Training Increased $4.3 M or 1.3% due to increased activity in CSE, MSASS and LAW. Partially offset with decreased activity in WSOM, DENT, NURS, CSOM and UGEN. Restricted Gifts Increased $1.6 M or 3.5% due to increased gifts in CAS, CSE, MSASS, NURS and UGEN. Partially offset by decreased gifts in WSOM, LAW and DENT.Overhead Recovery In line with 2021 Operating Budget. Increased activity in CSE, MSASS and CSOM offset with decreased activity in DENT, NURS, and UGEN.Unrestricted Gifts Increased $0.7 M or 19.8% due to increased activity in CAS and CSE. Organized Activities Increased $2.6 M or 33.7% due to increased activity in DENT.Other Income Increased $5.5 M or 16.5% due to increased activity in CSE, WSOM, MSASS, LAW and UGEN. Partially offset with decreased activity in CSOM.Auxiliaries Increased $2.8 M or 3.9% due to increased revenue in Food Service, Student Housing and Parking.

NOTES TO REVENUEFiscal Year 2022 Budget vs. Fiscal Year 2021 Budget

10 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET E X P E N S E D E T A I L

TOTAL EXPENSE Fiscal Year 2022 Budget

$ Increase/ 2020 2021 2022 (Decrease) % VarianceIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetE X P E N S E DIRECT EXPENSE Faculty Salaries $155,435 $153,560 $158,684 $5,124 3.30% Other Salaries 105,246 104,101 107,269 3,168 3.00% TOTAL SALARIES 260,681 257,661 265,953 8,292 3.20% Fringe 82,494 76,325 83,876 7,551 9.90% Student Salaries 31,008 27,912 31,660 3,748 13.40% Student Aid 216,150 215,621 227,704 12,083 5.60% Non-salary 319,258 297,077 302,547 5,470 1.80%TOTAL DIRECT EXPENSE 909,591 874,596 911,740 37,144 4.20% Total Restricted 441,828 422,773 428,255 5,482 1.30% Total Unrestricted 467,763 451,823 483,485 31,662 7.00%INDIRECT EXPENSE Library 15,553 13,336 14,306 970 7.30% Student Services 32,978 28,573 29,923 1,350 4.70% Plant 71,266 66,803 68,318 1,515 2.30% Information Services 31,946 28,106 29,427 1,321 4.70% University Services 73,792 59,641 74,380 14,739 24.70%TOTAL INDIRECT EXPENSE 225,535 196,459 216,354 19,895 10.10% Auxiliaries 60,212 61,630 64,536 2,906 4.70%TOTAL EXPENSE $1,195,338 $1,132,685 $1,192,630 $59,945 5.30%

EXPENSE COMPARISON BY YEAR

328,631 333,232 340,123 343,175 333,986 349,829

512,767 539,804 562,421 566,416 540,610 561,911

264,024 267,676

277,804 285,747 258,089

280,890

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

2017Actual

2018Actual

2019Actual

2020Actual

2021Budget

2022Budget

Indirect Expense andAuxiliaries

Other Direct Expense

Salaries & Fringe

In thousands of dollars

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 11E X P E N S E D E T A I L

NOTES TO EXPENSEFiscal Year 2022 Budget vs. Fiscal Year 2021 Budget

D I R E C T E X P E N S EFaculty Salaries Increased $5.1 M or 3.3% in CAS, CSE, WSOM, DENT, NURS, CSOM and UGEN. Partially offsetting is a decrease in MSASS. Other Salaries Increased $3.2 M or 3.0% in CSE, WSOM, MSASS, LAW, DENT, CSOM and UGEN.Fringe Benefits Increased $7.6 M or 9.9%. The federal fringe benefit rate decreased from 30.0% to 29.0%. The non-federal fringe rate increased from 30.0% to 33.0%. Student Salaries Increased $3.7 M or 13.4% in CAS, CSE, MSASS and CSOM. Partially offsetting are lower salaries in WSOM and NURS.Student Aid Increased $12.1 M or 5.6% in CAS, WSOM, LAW, NURS, CSOM and UGEN. Partially offsetting are decreases in CSE and MSASS. The increase in UGEN reflects an Undergraduate Student Aid discount rate of 50.5%.Non-salary Increased $5.5 M or 1.8% in CSE, MSASS, LAW, CSOM and UGEN. Partially offsetting are decreases in CAS, WSOM, DENT and NURS.

I N D I R E C T E X P E N S E A N D A U X I L I A R I E SLibrary Increased $1.0 M or 7.3% due to guideline increase and incremental Other Income offset. Student Services Increased $1.4 M or 4.7% due to guideline increase and incremental Other Income offset. Plant Increased $1.5 M or 2.3% due to guideline increase.Information Services Increased $1.3 M or 4.7% due to guideline increase and incremental Other Income offset.University Services Increased $14.7 M or 24.7% due to guideline increase and incremental Other Income offset. Also included $10.0 M increase for continued COVID-19 costs.Auxiliaries Increased $2.9 M or 4.7% due to due to increased expense in Food Service, Student Housing and Parking.

12 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET S U M M A R Y B Y M A N A G E M E N T C E N T E R

SUMMARY OF OPERATIONS BY MANAGEMENT CENTERFiscal Year 2022 Budget Use of Total Total Operating Retained Surplus/In thousands of dollars Revenue Expense Margin Surplus (Deficit)

CAS $115,304 $112,684 $2,620 - $2,620 CSE 114,226 110,622 3,604 - 3,604WSOM 53,761 56,885 (3,124) 2,098 (1,026)MSASS 29,863 29,862 1 - 1 LAW 39,241 41,241 (2,000) - (2,000)DENT 39,730 39,152 578 - 578NURS 34,795 34,629 166 - 166CSOM 506,514 500,598 5,916 - 5,916UGEN 269,392 266,570 2,822 - 2,822OPERATING BUDGET $1,202,826 $1,192,243 $10,583 $2,098 $12,681

REVENUE BY MANAGEMENT CENTER2021 Budget — $1,202,826

EXPENSE BY MANAGEMENT CENTER2021 Budget — $1,192,243

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 13S U M M A R Y B Y M A N A G E M E N T C E N T E R

STATEMENT OF OPERATIONS BY MANAGEMENT CENTERFISCAL YEAR 2022 BUDGET TotalIn thousands of dollars CAS CSE WSOM MSASS LAW DENT NURS CSOM UGEN UniversityR E V E N U E TUITION Undergraduate $67,722 $36,210 $14,724 $154 $82 $77 $6,418 $5,590 $140,501 $271,478 Summer 4,500 2,107 1,475 1,932 464 512 2,630 6,022 - 19,642 Professional - 486 26,864 11,945 31,337 23,184 10,530 67,914 - 172,260 Graduate 12,500 14,602 929 643 - 2,093 1,156 32,018 - 63,941 Fees 586 617 262 - - 486 290 500 998 3,739TOTAL TUITION 85,308 54,022 44,254 14,674 31,883 26,352 21,024 112,044 141,499 531,060ENDOWMENT Restricted Endowment 8,392 5,629 2,456 1,794 5,137 704 3,636 16,947 13,931 58,626 Unrestricted Endowment 7,663 3,966 2,101 492 462 663 1,006 11,256 12,709 40,318TOTAL ENDOWMENT 16,055 9,595 4,557 2,286 5,599 1,367 4,642 28,203 26,640 98,944OTHER REVENUE Research & Training 7,269 33,724 71 6,643 182 1,554 4,417 267,226 1,596 322,682 Restricted Gifts 3,241 4,116 432 1,991 317 553 2,988 21,148 12,161 46,947 Overhead Recovery 2,918 9,423 33 1,854 60 800 1,484 59,180 59 75,809 Unrestricted Gifts 600 765 400 125 1,000 176 240 825 100 4,231 State Support - - - - - - - 1,575 - 1,575 Organized Activities - - 3,269 - - 6,386 - 545 - 10,200 Other Income 300 2,581 745 2,290 200 2,542 - 15,768 14,651 39,077 Auxiliaries - - - - - - - - 72,688 72,688TOTAL OTHER REVENUE 14,328 50,609 4,950 12,903 1,759 12,011 9,129 366,267 101,253 573,209

TOTAL REVENUE $115,691 $114,226 $53,761 $29,863 $39,241 $39,730 $34,795 $506,514 $269,392 $1,203,213

E X P E N S E DIRECT EXPENSE Faculty Salaries $28,906 $19,792 $15,178 $5,074 $7,152 $11,242 $8,685 $62,250 $405 $158,684 Other Salaries 8,702 11,676 5,017 6,254 3,057 5,506 4,616 59,981 2,460 107,269 TOTAL SALARIES 37,608 31,468 20,195 11,328 10,209 16,748 13,301 122,231 2,865 265,953

Fringe 12,124 9,932 6,639 3,563 3,327 5,489 4,290 37,641 871 83,876 Student Salaries 7,341 13,880 669 837 126 93 857 7,650 207 31,660 Student Aid 11,432 3,265 7,354 4,908 15,396 639 2,933 33.044 148,733 227,704 Non-salary 10,288 24,270 8,729 4,482 4,296 7,080 4,934 233,465 5,003 302,547TOTAL DIRECT EXPENSE 78,793 82,815 43,586 25,118 33,354 30,049 26,315 434,031 157,679 911,740 Restricted Direct Expense 18,902 43,469 2,959 10,428 5,636 2,811 11,041 305,321 27,688 428,255 Unrestricted Direct Expense 59,891 39,346 40,627 14,690 27,718 27,238 15,274 128,710 129,991 483,485INDIRECT EXPENSE Library 3,159 2,099 1,498 580 1,951 508 670 2,523 1,318 14,306 Student Services 8,737 5,209 2,340 245 319 346 1,021 2,342 9,364 29,923 Plant 10,951 10,578 3,488 1,126 1,857 3,652 2,434 30,283 3,949 68,318 Information Services 6,362 4,601 2,799 1,184 1,360 1,918 1,744 9,298 161 29,427 University Services 5,069 5,320 3,174 1,609 2,400 2,679 2,445 22,121 29,563 74,380TOTAL INDIRECT EXPENSE 34,278 27,807 13,299 4,744 7,887 9,103 8,314 66,567 44,355 216,354 Auxiliaries - - - - - - - - 64,536 64,536TOTAL EXPENSE $113,071 $110,622 $56,885 $29,862 $41,241 $39,152 $34,629 $500,598 $266,570 $1,192,630 OPERATING MARGIN $2,620 $3,604 ($3,124) $1 ($2,000) $578 $166 $5,916 $2,822 $10,583 Undergraduate Tuition Subvention - - - - - - - - - - Use of Retained Surplus - - 2,098 - - - - - - 2,098SURPLUS/(DEFICIT) $2,620 $3,604 ($1,026) $ 1 ($2,000) $578 $166 $5,916 $2,822 $12,681

14 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET C A S

COLLEGE OF ARTS AND SCIENCESFISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $63,802 $63,270 $67,722 $4,452 7.0% Summer 3,254 5,255 4,500 (755) -14.40% Professional - - - - 0.00% Graduate 11,984 12,000 12,500 500 4.20% Fees 524 533 586 53 9.90%TOTAL TUITION 79,564 81,058 85,308 4,250 5.20%ENDOWMENT Restricted Endowment 7,959 8,849 8,392 (457) -5.20% Unrestricted Endowment 7,568 7,625 7,63 38 0.50%TOTAL ENDOWMENT 15,527 16,474 16,055 (419) -2.50%OTHER REVENUE Research & Training 6,508 7,200 7,269 69 1.00% Restricted Gifts 2,952 2,948 3,241 293 9.90% Overhead Recovery 2,649 2,872 2,918 46 1.60% Unrestricted Gifts 456 500 600 100 20.00% State Support - - - - 0.00% Organized Activities 4 - - - 0.00% Other Income 534 300 300 - 0.00% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 13,103 13,820 14,328 508 3.70%TOTAL REVENUE $108,194 $111,352 $115,691 $4,339 3.90%E X P E N S E DIRECT EXPENSE Faculty Salaries 28,548 $28,488 $28,906 $418 1.50% Other Salaries 8,861 8,613 8,702 89 1.00% TOTAL SALARIES 37,409 37,101 37,608 507 1.40% Fringe 12,111 10,942 12,124 1,182 10.80% Student Salaries 7,141 7,222 7,341 119 1.60% Student Aid 8,907 9,618 11,432 1,814 18.90% Non-salary 8,581 10,482 10,288 (194) -1.90%TOTAL DIRECT EXPENSE 74,149 75,365 78,793 3,428 4.50%Restricted Direct Expense 17,419 18,997 18,902 (95) -0.50%Unrestricted Direct Expense 56,730 56,368 59,891 3,523 6.30%INDIRECT EXPENSE Library 3,373 3,019 3,159 140 4.60% Student Services 9,485 8,388 8,737 349 4.20% Plant 12,713 11,256 10,951 (305) -2.70% Information Services 7,271 6,200 6,362 162 2.60% University Services 5,503 4,549 5,069 520 11.40%TOTAL INDIRECT EXPENSE 38,345 33,412 34,278 866 2.60% Auxiliaries - - - - 0.00%TOTAL EXPENSE $112,494 $108,777 $113,071 $4,294 3.90% OPERATING MARGIN ($4,300) $2,575 $2,620 $45 1.70%Undergraduate Tuition Subvention - - - - Use of Retained Surplus - - - - SURPLUS/(DEFICIT) ($4,300) $2,575 $2,620 $45

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 15C S E

CASE SCHOOL OF ENGINEERINGFISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $36,814 $35,148 $36,210 $1,062 3.00% Summer 1,891 2,756 2,107 (649) -23.50% Professional 505 415 486 71 17.10% Graduate 113,368 13,147 14,602 1,455 11.10% Fees 565 605 617 12 2.00%TOTAL TUITION 53,143 52,071 54,022 1,951 3.70%ENDOWMENT Restricted Endowment 6,110 5,676 5,629 (47) -0.80% Unrestricted Endowment 4,136 4,053 3,966 (87) -2.10%TOTAL ENDOWMENT 10,246 9,729 9,595 (134) -1.40%OTHER REVENUE Research & Training 28,797 29,616 33,724 4,108 13.90% Restricted Gifts 3,891 3,818 4,116 298 7.80% Overhead Recovery 9,040 9,260 9,423 163 1.80% Unrestricted Gifts 321 330 765 435 131.80% State Support - - - - 0.00% Organized Activities - - - - 0.00% Other Income 1,688 1,599 2,581 982 61.40% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 43,737 44,623 50,609 5,986 13.40%TOTAL REVENUE $107,126 $106,423 $114,226 $7,803 7.30%E X P E N S E DIRECT EXPENSE Faculty Salaries $19,953 $18,029 $19,792 $1,763 9.80% Other Salaries 11,678 11,517 11,676 159 1.40% TOTAL SALARIES 31,631 29,546 31,468 1,922 6.50% Fringe 10,171 8,746 9,932 1,186 13.60% Student Salaries 13,016 10,985 13,880 2,895 26.40% Student Aid 3,803 3,466 3,265 (201) -5.80% Non-salary 18,845 21,238 24,270 3,032 14.30%TOTAL DIRECT EXPENSE 77,466 73,981 82,815 8,834 11.90%Restricted Direct Expense 38,798 39,110 43,469 4,359 11.10%Unrestricted Direct Expense 38,668 34,871 39,346 4,475 12.80%INDIRECT EXPENSE Library 2,313 2,092 2,099 7 0.30% Student Services 5,631 5,101 5,209 108 2.10% Plant 12,076 10,784 10,578 (206) -1.90% Information Services 5,300 4,689 4,601 (88) -1.90% University Services 6,378 4,867 5,320 453 9.30%TOTAL INDIRECT EXPENSE 31,698 27,533 27,807 274 1.00% Auxiliaries - - - - 0.00%TOTAL EXPENSE $109,164 $101,514 $110,622 $9,108 9.00% OPERATING MARGIN ($2,038) $4,909 $3,604 ($1,305) -26.60%Undergraduate Tuition Subvention - - - - Use of Retained Surplus - - - - SURPLUS/(DEFICIT) ($2,038) $4,909 $3,604 ($1,305)

16 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET W S O M

WEATHERHEAD SCHOOL OF MANAGEMENT FISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $14,807 $14,258 $14,724 $466 3.30% Summer 1,708 1,445 1,475 30 2.10% Professional 27,006 22,586 26,864 4,278 18.90% Graduate 1,564 1,051 929 (122) -11.60% Fees 317 306 262 (44) -14.40%TOTAL TUITION 45,402 39,646 44,254 4,608 11.60%ENDOWMENT Restricted Endowment 3,050 3,654 2,456 (1,198) -32.80% Unrestricted Endowment 2,135 2,089 2,101 12 0.60%TOTAL ENDOWMENT 5,185 5,743 4,557 (1,186) -20.70%OTHER REVENUE Research & Training 414 363 71 (292) -80.40% Restricted Gifts 1,034 1,832 432 (1,400) -76.40% Overhead Recovery 87 74 33 (41) -55.40% Unrestricted Gifts 646 322 400 78 24.20% State Support - - - - 0.00% Organized Activities 2,981 3,239 3,269 30 0.90% Other Income 1,069 381 745 364 95.50% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 6,231 6,211 4,950 (1,261) -20.30%TOTAL REVENUE $56,818 $51,600 $53,761 $2,161 4.20%E X P E N S E DIRECT EXPENSE Faculty Salaries $15,652 $15,025 $15,178 $153 1.00% Other Salaries 4,803 4,737 5,017 280 5.90% TOTAL SALARIES 20,455 19,762 20,195 433 2.20% Fringe 6,726 5,819 6,639 820 14.10% Student Salaries 522 774 669 (105) -13.60% Student Aid 7,409 7,055 7,354 299 4.20% Non-salary 6,749 8,991 8,729 (262) -2.90%TOTAL DIRECT EXPENSE 41,861 42,401 43,586 1,185 2.80%Restricted Direct Expense 4,498 5,849 2,959 (2,890) -49.40%Unrestricted Direct Expense 37,363 36,552 40,627 4,075 11.10%INDIRECT EXPENSE Library 1,649 1,471 1,498 27 1.80% Student Services 2,486 2,283 2,340 57 2.50% Plant 4,122 3,581 3,488 (93) -2.60% Information Services 3,236 2,820 2,799 (21) -0.70% University Services 3,852 3,065 3,174 109 3.60%TOTAL INDIRECT EXPENSE 15,345 13,220 13,299 79 0.60% Auxiliaries - - - - 0.00%TOTAL EXPENSE $57,206 $55,621 $56,885 $1,264 2.30% OPERATING MARGIN ($388) ($4,021) ($3,124) $897 22.30%Undergraduate Tuition Subvention - - - - Use of Retained Surplus 388 1,759 2,098 339 SURPLUS/(DEFICIT) $ - ($2,262) ($1,026) $1,236

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 17M S A S S

MANDEL SCHOOL OF APPLIED SOCIAL SCIENCESFISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $150 $107 $154 $47 43.90% Summer 3,605 2,542 1,932 (610) -24.00% Professional 14,544 11,847 11,945 98 0.80% Graduate 501 588 643 55 9.40% Fees - 87 - (87) -100.00%TOTAL TUITION 18,800 15,171 14,674 (497) -3.30%ENDOWMENT Restricted Endowment 1,963 1,847 1,794 (53) -2.90% Unrestricted Endowment 508 511 492 (19) -3.70%TOTAL ENDOWMENT 2,471 2,358 2,286 (72) -3.10%OTHER REVENUE Research & Training 7,744 5,452 6,643 1,191 21.80% Restricted Gifts 1,441 920 1,991 1,071 116.40% Overhead Recovery 1,378 1,359 1,854 495 36.40% Unrestricted Gifts 100 75 125 50 66.70% State Support - - - - 0.00% Organized Activities - - - - 0.00% Other Income 5,294 1,770 2,290 520 29.40% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 15,957 9,576 12,903 3,327 34.70%TOTAL REVENUE $37,228 $27,105 $29,863 $2,758 10.20%E X P E N S E DIRECT EXPENSE Faculty Salaries $5,407 $5,127 $5,074 $(53) -1.00% Other Salaries 6,499 5,389 6,254 865 16.10% TOTAL SALARIES 11,906 10,516 11,328 812 7.70% Fringe 3,888 3,117 3,563 446 14.30% Student Salaries 489 529 837 308 58.20% Student Aid 5,474 5,170 4,908 (262) -5.10% Non-salary 9,689 3,496 4,482 986 28.20%TOTAL DIRECT EXPENSE 31,446 22,828 25,118 2,290 10.00%Restricted Direct Expense 11,148 8,219 10,428 2,209 26.90%Unrestricted Direct Expense 20,298 14,609 14,690 81 0.60%INDIRECT EXPENSE Library 561 535 580 45 8.40% Student Services 297 222 245 23 10.40% Plant 1,311 1,127 1,126 (1) -0.10% Information Services 1,130 874 1,184 310 35.50% University Services 1,942 1,737 1,609 (128) -7.40%TOTAL INDIRECT EXPENSE 5,421 4,495 4,744 249 5.50% Auxiliaries - - - - 0.00%TOTAL EXPENSE $36,687 $27,323 $29,862 $2,539 9.30% OPERATING MARGIN $541 ($218) $1 $219 100.50%Undergraduate Tuition Subvention - - - - Use of Retained Surplus - 218 - (218) SURPLUS/(DEFICIT) $541 $- $1 $1

18 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET L A W

SCHOOL OF LAWFISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $122 $99 $82 $(17) -17.20% Summer 441 328 464 136 41.50% Professional 31,270 29,239 31,337 2,098 7.20% Graduate - - - - 0.00% Fees - - - - 0.00%TOTAL TUITION 31,833 29,666 31,883 2,217 7.50%ENDOWMENT Restricted Endowment 4,021 5,430 5,137 (293) -5.40% Unrestricted Endowment 470 470 462 (8) -1.70%TOTAL ENDOWMENT 4,491 5,900 5,599 (301) -5.10%OTHER REVENUE Research & Training 300 44 182 138 313.60% Restricted Gifts 764 482 317 (165) -34.20% Overhead Recovery 97 70 60 (10) -14.30% Unrestricted Gifts 908 1,000 1,000 - 0.00% State Support - - - - 0.00% Organized Activities - - - - 0.00% Other Income 161 50 200 150 300.00% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 2,230 1,646 1,759 113 6.90%TOTAL REVENUE $38,554 $37,212 $39,241 $2,029 5.50%E X P E N S E DIRECT EXPENSE Faculty Salaries $7,012 $7,151 $7,152 $1 0.0% Other Salaries 3,081 2,842 3,057 215 7.6% TOTAL SALARIES 10,093 9,993 10,209 216 2.2% Fringe 3,270 2,949 3,327 378 12.80% Student Salaries 211 125 126 1 0.80% Student Aid 15,192 14,585 15,396 811 5.60% Non-salary 3,565 4,106 4,296 190 4.60%TOTAL DIRECT EXPENSE 32,331 31,758 33,354 1,596 5.00%Restricted Direct Expense 5,085 5,956 5,636 (320) -5.40%Unrestricted Direct Expense 27,246 25,802 27,718 1,916 7.40%INDIRECT EXPENSE Library 2,125 1,696 1,951 255 15.0% Student Services 361 333 319 (14) -4.2% Plant 2,117 1,863 1,857 (6) -0.3% Information Services 1,492 1,388 1,360 (28) -2.0% University Services 2,725 2,229 2,400 171 7.7%TOTAL INDIRECT EXPENSE 8,820 7,509 7,887 378 5.0% Auxiliaries - - - - 0.00%TOTAL EXPENSE $41,151 $39,267 $41,241 $1,974 5.0% OPERATING MARGIN ($2,597) ($2,055) ($2,000) $55 2.7%Undergraduate Tuition Subvention - - - - Use of Retained Surplus - - - - SURPLUS/(DEFICIT) ($2,597) ($2,055) ($2,000) $55

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 19D E N T

SCHOOL OF DENTAL MEDICINEFISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $58 $74 $77 $3 4.10% Summer 491 504 512 8 1.60% Professional 21,079 22,252 23,184 932 4.20% Graduate 2,003 2,131 2,093 (38) -1.80% Fees 535 391 486 95 24.30%TOTAL TUITION 24,166 25,352 26,352 1,000 3.90%ENDOWMENT Restricted Endowment 918 709 704 (5) -0.70% Unrestricted Endowment 662 652 663 11 1.70%TOTAL ENDOWMENT 1,580 1,361 1,367 6 0.40%OTHER REVENUE Research & Training 1,975 2,118 1,554 (564) -26.60% Restricted Gifts 1,028 773 553 (220) -28.50% Overhead Recovery 1,013 1,101 800 (301) -27.30% Unrestricted Gifts 157 180 176 (4) -2.20% State Support - - - - 0.00% Organized Activities 6,069 3,841 6,386 2,545 66.30% Other Income 2,907 2,478 2,542 64 2.60% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 13,149 10,491 12,011 1,520 14.50%TOTAL REVENUE $38,895 $37,204 $39,730 $2,526 6.80%E X P E N S E DIRECT EXPENSE Faculty Salaries $9,685 $10,363 $11,242 $879 8.50% Other Salaries 4,611 5,327 5,506 179 3.40% TOTAL SALARIES 14,296 15,690 16,748 1,058 6.70% Fringe 4,690 4,615 5,489 874 18.90% Student Salaries 115 73 93 20 27.40% Student Aid 564 581 639 58 10.00% Non-salary 9,368 7,736 7,080 (656) -8.50%TOTAL DIRECT EXPENSE 29,033 28,695 30,049 1,354 4.70%Restricted Direct Expense 3,921 3,600 2,811 (789) -21.90%Unrestricted Direct Expense 25,112 25,095 27,238 2,143 8.50%INDIRECT EXPENSE Library 461 419 508 89 21.20% Student Services 311 287 346 59 20.60% Plant 3,266 3,483 3,652 169 4.90% Information Services 1,844 1,853 1,918 65 3.50% University Services 2,298 2,299 2,679 380 16.50%TOTAL INDIRECT EXPENSE 8,180 8,341 9,103 762 9.10% Auxiliaries - - - - 0.00%TOTAL EXPENSE $37,213 $37,036 $39,152 $2,116 5.70% OPERATING MARGIN $1,682 $168 $578 $410 244.00%Undergraduate Tuition Subvention - - - - Use of Retained Surplus - - - - SURPLUS/(DEFICIT) $1,682 $168 $578 $410

20 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET N U R S

FRANCES PAYNE BOLTON SCHOOL OF NURSINGFISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $5,699 $5,653 $6,418 $765 13.50% Summer 2,112 2,440 2,630 190 7.80% Professional 11,672 10,642 10,530 (112) -1.10% Graduate 975 681 1,156 475 69.80% Fees 304 297 290 (7) -2.40%TOTAL TUITION 20,762 19,713 21,024 1,311 6.70% ENDOWMENT Restricted Endowment 3,828 3,664 3,636 (28) -0.80% Unrestricted Endowment 1,038 1,045 1,006 (39) -3.70%TOTAL ENDOWMENT 4,866 4,709 4,642 (67) -1.40%OTHER REVENUE Research & Training 6,301 5,389 4,417 (972) -18.00% Restricted Gifts 978 2,059 2,988 929 45.10% Overhead Recovery 2,018 1,820 1,484 (336) -18.50% Unrestricted Gifts 229 240 240 - 0.00% State Support - - - - 0.00% Organized Activities - - - - 0.00% Other Income 134 - - - 0.00% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 9,660 9,508 9,129 (379) -4.00%TOTAL REVENUE $35,288 $33,930 $34,795 $865 2.50%E X P E N S E DIRECT EXPENSE Faculty Salaries $8,838 $8,205 $8,685 $480 5.90% Other Salaries 4,278 4,615 4,616 1 0.00% TOTAL SALARIES 13,116 12,820 13,301 481 3.80% Fringe 4,304 3,799 4,290 491 12.90% Student Salaries 1,015 957 857 (100) -10.40% Student Aid 3,065 2,831 2,933 102 3.60% Non-salary 4,975 5,205 4,934 (271) -5.20%TOTAL DIRECT EXPENSE 26,475 25,612 26,315 703 2.7%Restricted Direct Expense 11,107 11,112 11,041 (71) -0.6%Unrestricted Direct Expense 15,368 14,500 15,274 774 5.3%INDIRECT EXPENSE Library 731 656 670 14 2.10% Student Services 1,111 972 1,021 49 5.00% Plant 2,538 2,413 2,434 21 0.90% Information Services 1,628 1,689 1,744 55 3.30% University Services 2,216 2,232 2,445 213 9.50%TOTAL INDIRECT EXPENSE 8,224 7,962 8,314 352 4.40% Auxiliaries - - - - 0.00%TOTAL EXPENSE $34,699 $33,574 $34,629 $1,055 3.10% OPERATING MARGIN $589 $356 $166 ($190) -53.40%Undergraduate Tuition Subvention - - - - Use of Retained Surplus - - - - SURPLUS/(DEFICIT) $589 $356 $166 ($190)

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 21C S O M

SCHOOL OF MEDICINEFISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $4,476 $4,877 $5,590 $713 14.60% Summer 5,132 5,102 6,022 920 18.00% Professional 56,259 58,422 67,914 9,492 16.20% Graduate 32,886 30,965 32,018 1,053 3.40% Fees 518 500 500 - 0.00%TOTAL TUITION 99,271 99,866 112,044 12,178 12.20% ENDOWMENT Restricted Endowment 14,413 16,947 16,947 - 0.00% Unrestricted Endowment 11,951 11,694 11,256 (438) -3.70%TOTAL ENDOWMENT 26,364 28,641 28,203 (438) -1.50%OTHER REVENUE Research & Training 277,170 272,300 267,226 (5,074) -1.90% Restricted Gifts 23,076 21,148 21,148 - 0.00% Overhead Recovery 60,465 59,000 59,180 180 0.30% Unrestricted Gifts 971 800 825 25 3.10% State Support 258 548 545 (3) -0.50% Other Income 22,083 17,236 15,768 (1,468) -8.50% Auxiliaries - - - - 0.00%TOTAL OTHER REVENUE 386,515 372,622 366,267 (6,355) -1.70%TOTAL REVENUE $512,150 $501,129 $506,514 $5,385 1.10%E X P E N S E DIRECT EXPENSE Faculty Salaries $59,856 $61,000 $62,250 $1,250 2.0% Other Salaries 60,290 59,000 59,981 981 1.7% TOTAL SALARIES 120,146 120,000 122,231 2,231 1.9% Fringe 36,821 35,673 37,641 1,968 5.5% Student Salaries 7,074 7,100 7,650 550 7.7% Student Aid 30,269 31,199 33,044 1,845 5.9% Non-salary 247,576 231,292 233,465 2,173 0.9%TOTAL DIRECT EXPENSE 441,886 425,264 434,031 8,767 2.1%Restricted Direct Expense 314,659 310,395 305,321 (5,074) -1.6%Unrestricted Direct Expense 127,227 114,869 128,710 13,841 12.0%INDIRECT EXPENSE Library 2,915 2,677 2,523 (154) -5.8% Student Services 2,313 2,250 2,342 92 4.1% Plant 32,959 30,222 30,283 61 0.2% Information Services 9,103 9,410 9,298 (112) -1.2% University Services 24,521 20,365 22,121 1,756 8.6%TOTAL INDIRECT EXPENSE 71,811 64,924 66,567 1,643 2.5% Auxiliaries - - - - 0.00%TOTAL EXPENSE $513,697 $490,188 $500,598 $10,410 2.1% OPERATING MARGIN ($1,547) $10,941 $5,916 ($5,025) -45.9%Undergraduate Tuition Subvention - - - -Use of Retained Surplus - - - - SURPLUS/(DEFICIT) ($1,547) $10,941 $5,916 ($5,025)

22 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET U G E N

UNIVERSITY GENERAL FISCAL YEAR 2022 BUDGET

$ Increase/ 2020 2021 2022 (Decrease) % Variance toIn thousands of dollars Actual Budget Budget 2021 Budget 2021 BudgetR E V E N U E TUITION Undergraduate $124,327 $131,277 $140,501 $9,224 7.00% Summer (61) - - - 0.00% Professional - - - - 0.00% Graduate (23) - - - 0.00% Fees 1,019 998 998 - 0.00%TOTAL TUITION 125,262 132,275 141,499 9,224 7.00% ENDOWMENT Restricted Endowment 14,885 12,225 13,931 1,706 14.00% Unrestricted Endowment 8,019 12,695 12,709 14 0.10%TOTAL ENDOWMENT 22,904 24,920 26,640 1,720 6.90%OTHER REVENUE Research & Training 1,844 1,931 1,596 (335) -17.30% Restricted Gifts 18,464 11,379 12,161 782 6.90% Overhead Recovery 100 269 57 (212) -78.80% Unrestricted Gifts 11 85 100 15 17.60% State Support - - - - 0.00% Organized Activities - - - - 0.00% Other Income 26,260 12,730 14,651 1,921 15.10% Auxiliaries 67,997 69,936 72,688 2,752 3.90%TOTAL OTHER REVENUE 114,676 96,330 101,253 4,923 5.10%TOTAL REVENUE $262,842 $253,525 $269,392 $15,867 6.30%E X P E N S E DIRECT EXPENSE Faculty Salaries $484 $172 $405 $233 135.50% Other Salaries 1,145 2,061 2,460 399 19.40% TOTAL SALARIES 1,629 2,233 2,865 632 28.30% Fringe 513 665 871 206 31.00% Student Salaries 1,425 147 207 60 40.80% Student Aid 141,467 141,116 148,733 7,617 5.40% Non-salary 9,910 4,531 5,003 472 10.40%TOTAL DIRECT EXPENSE 154,944 148,692 157,679 8,987 6.00%Restricted Direct Expense 35,193 25,535 27,688 2,153 8.40%Unrestricted Direct Expense 119,751 123,157 129,991 6,834 5.50%INDIRECT EXPENSE Library 1,425 771 1,318 547 70.90% Student Services 10,983 8,737 9,364 627 7.20% Plant 164 2,074 3,949 1,875 90.40% Information Services 942 (817) 161 978 119.70% University Services 24,357 8,298 29,563 21,265 256.30%TOTAL INDIRECT EXPENSE 37,871 19,063 44,355 25,292 132.70% Auxiliaries 60,212 61,630 64,536 2,906 4.70%TOTAL EXPENSE $253,027 $229,385 $266,570 $37,185 16.20% OPERATING MARGIN $9,815 $24,140 $2,822 $(21,318) -88.30%Undergraduate Tuition Subvention - - - -Use of Retained Surplus - - - - SURPLUS/(DEFICIT) $9,815 $24,140 $2,822 ($21,318)

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 23U N I V E R S I T Y O P E R A T I N G M A R G I N

UNIVERSITY OPERATING MARGINBY MANAGEMENT CENTER

UNIVERSITY OPERATING MARGINIn thousands of dollars

* 2021 Budget includes contingencies of $28 M for expected COVID-19 impact

2017 2018 2019 2020 2021 2022In thousands of dollars Actual Actual Actual Actual Budget* Budget

CAS $(2,324) $(4,707) $(5,295) $(4,300) 2,575 2,620 CSE 39 (1,459) (1,233) (2,038) 4,909 3,604 WSOM (292) (271) 855 (388) (4,021) (3,124)MSASS 1,206 688 (787) 541 (218) 1LAW (6,030) (5,943) (4,367) (2,597) (2,055) (2,000)DENT 2,068 3,147 2,314 1,682 168 578NURS 222 596 457 589 356 166CSOM (5,644) (4,979) (4,872) (1,547) 10,941 5,916UGEN 12,621 17,395 17,758 9,815 24,140 2,822 UNIVERSITY CONTINGENCY - - - - (28,000) -

UNIVERSITY OPERATING MARGIN $1,866 $4,467 $4,830 $1,757 $8,795 $10,583

2017 2018 2019 2020 2021 2022Budget 4,883 2,256 (907) 4,665 8,795 10,583Actual 1,866 4,467 4,830 1,757 8,063

4,883

2,256

(907)

4,665

8,795

10,583

1,866

4,467 4,830

1,757

8,063

(1,500)

500

2,500

4,500

6,500

8,500

10,500

*

*

24 CASE W ESTERN RES ERVE UNIVERS IT Y OPERATING BUDGET U N I V E R S I T Y S U R P L U S / ( D E F I C I T )

UNIVERSITY SURPLUS/(DEFICIT)BY MANAGEMENT CENTER

UNIVERSITY SURPLUS/(DEFICIT)In thousands of dollars

* 2021 Budget includes contingencies of $28 M for expected COVID-19 impact

2017 2018 2019 2020 2021 2022In thousands of dollars Actual Actual Actual Actual Budget* Budget

CAS $(2,324) $(4,707) $(5,295) $(4,300) $2,575 $2,620 CSE 39 (1,459) (1,233) (2,038) 4,909 3,604WSOM - - 855 - (2,262) (1,026)MSASS 1,206 688 - 541 - 1LAW (6,030) (5,943) (4,367) (2,597) (2,055) (2,000)DENT 2,068 3,147 2,314 1,682 168 578NURS - - (2,809) (1,547) 10,941 5,916UGEN 11,871 16,645 17,758 9,815 24,140 2,822UNIVERSITY CONTINGENCY - - - - (28,000) -

UNIVERSITY SURPLUS/(DEFICIT) $7,052 $8,967 $7,680 $2,145 $10,772 $12,681

2017 2018 2019 2020 2021 2022Budget 5,401 8,548 4,739 5,705 10,772 12,681Actual 7,052 8,967 7,680 2,145 9,695

5,401

8,548

4,739

5,705

10,772

12,681

7,052

8,967

7,680

2,145

9,695

-

2,000

4,000

6,000

8,000

10,000

12,000

*

*

CASE WESTERN RESERVE UNIVERSITY OPERATING BUDGET 25S I G N I F I C A N T R E V / E X P M O V E M E N T S

SIGNIFICANT REVENUE AND EXPENSE MOVEMENTSFISCAL YEAR 2022 BUDGET $ Increase/ % Variance 2021* 2022 (Decrease) to 2021In thousands of dollars Budget Budget 2021 Budget BudgetR E V E N U E TUITION UndergraduateUndergraduate - 3.00% tuition rate increase; 4.2% enrollment increase $253,763 $271,478 $17,715 7.00% SummerSummer - enrollment increase in WSOM, LAW, DENT, NURS & CSOM; decrease in CAS & CSE 20,372 19,642 (730) -3.60% ProfessionalProfessional - price/enrollment increase in all schools except NURS 149,403 172,260 22,857 15.30% GraduateGraduate - enrollment increase in CAS, CSE, MSASS, NURS & CSOM; decrease in WSOM & DENT 58,563 63,941 5,378 9.20% FeesFees - increase in CAS, CSE & DENT; decrease in WSOM, MSASS & NURS 3,717 3,739 22 0.60% ENDOWMENT RestrictedRestricted - decrease in all management centers except UGEN 59,001 58,626 (375) -0.60% UnrestrictedUnrestricted - increase in CAS, WSOM, DENT & UGEN; decrease 40,834 40,318 (516) -1.30% in CSE, MSASS, LAW, NURS & CSOM OTHER REVENUE Research and TrainingResearch and Training - increase in CSE, MSASS & LAW; decrease in WSOM, DENT, NURS, CSOM & UGEN 318,413 322,682 4,269 1.30% Restricted GiftsRestricted Gifts - increase in CAS, CSE, MSASS, NURS & UGEN; decrease in WSOM, LAW & DENT 45,359 46,947 1,588 3.50% Overhead RecoveryOverhead Recovery - increase in CSE, MSASS & CSOM; decrease in DENT, NURS & UGEN 75,825 75,809 (16) 0.00% Unrestricted GiftsUnrestricted Gifts - increase in CAS & CSE 3,532 4,231 699 19.80% State Support - decrease in CSOM 1,590 1,575 (15) -0.90% Organized ActivitiesOrganized Activities - increase in DENT 7,628 10,200 2,572 33.70% Other IncomeOther Income - increase in CSE, WSOM, MSASS, LAW & UGEN; decrease in CSOM 33,544 39,077 5,533 16.50% AuxiliariesAuxiliaries - increase in Food Service, Student Housing & Parking 69,936 72,688 2,752 3.90% TOTAL REVENUE $1,141,480 $1,203,213 $61,733 5.40%

E X P E N S E DIRECT EXPENSE Faculty SalariesFaculty Salaries - increase in CAS, CSE, WSOM, DENT, NURS, CSOM & UGEN $153,560 $158,684 $5,124 3.30% Other SalariesOther Salaries - increase in CAS, CSE, WSOM, MSASS, LAW, DENT, CSOM & UGEN 104,101 107,269 3,168 3.00% FringeFringe - federal rate decreased to 29.0%; non-federal rate increased to 33.0% 76,325 83,876 7,551 9.90% Student SalariesStudent Salaries - increase in CAS, CSE, MSASS & CSOM; decrease in WSOM & NURS 27,912 31,660 3,748 13.40% Student AidStudent Aid - increase in aid awarded; UG discount rate of 50.5% 215,621 227,704 12,083 5.60% Non-salaryNon-salary - increase in CSE, MSASS, LAW, CSOM & UGEN; decrease in CAS, WSOM, DENT & NURS 297,077 302,547 5,470 1.80%

INDIRECT EXPENSE AND AUXILIARIES LibraryLibrary - increase in most departments 13,336 14,306 970 7.30% Student ServicesStudent Services - increase in most departments 28,573 29,923 1,350 4.70% Plant ServicesPlant Services - increase in most departments 66,803 68,318 1,515 2.30% Information ServicesInformation Services - increase in most departments 28,106 29,427 1,321 4.70% University ServicesUniversity Services - increase in most departments 59,641 74,380 14,739 24.70% AuxiliariesAuxiliaries - increase in Food Service, Student Housing & Parking 61,630 64,536 2,906 4.70%TOTAL EXPENSE $1,132,685 $1,192,630 $59,945 5.30% OPERATING MARGIN $8,795 $10,583 $1,788 20.30%

*2021 Budget includes contingencies of $28 M for expected COVID-19 impact

26 — A PPEND IX A | C AS E WES T ERN RES ERVE UNIVERSITY OPERATING BUDGET S T U D E N T E N R O L L M E N T

STUDENT ENROLLMENT – FALL SEMESTERCase Western Reserve University students only

2019 2020 2021 2022 Actual Actual Budget BudgetU N D E R G R A D U AT E FULL-TIME * 5,096 5,237 5,062 5,231 PART-TIME 166 146 103 128 * Includes Cooperative Education students, which are not included in tuition calculations since these students are not charged tuition while in the Cooperative Education program P R O F E S S I O N A L FULL-TIME CSE 32 22 18 20 WSOM 722 681 561 617 MSASS 237 447 175 173 LAW 600 588 568 623 DENT 299 300 300 295 NURS 219 236 230 210 CSOM 823 831 942 1,112 TOTAL FULL-TIME 2,932 3,164 2,794 3,050 PART-TIME CSE - - - - WSOM 242 238 239 132 MSASS 117 101 277 231 LAW 21 26 25 25 DENT - - 2 - NURS 223 189 121 115 CSOM - - - - TOTAL PART-TIME 603 554 664 503 G R A D U AT E FULL-TIME CAS 495 465 500 500 CSE 592 602 379 420 WSOM 67 57 68 80 MSASS 31 29 12 28 LAW - - - - DENT 112 59 62 61 NURS 49 42 30 34 CSOM 903 897 983 900 Non-Degree 8 24 14 14 TOTAL FULL-TIME 2,257 2,116 2,048 2,037

PART-TIME CAS 43 33 45 45 CSE 109 109 119 133 WSOM 3 6 - - MSASS 3 2 15 8 LAW - - - - DENT - - 14 - NURS 3 2 6 6 CSOM 167 218 168 252 Non-Degree 106 127 120 120 TOTAL PART-TIME 434 497 487 564 TOTAL FULL-TIME STUDENTS 10,285 10,517 9,904 10,149TOTAL PART-TIME STUDENTS 1,203 1,197 1,254 1,170TOTAL STUDENT HEAD COUNT 11,488 11,714 11,158 11,319

CWRU OPERATING BUDGET | APPENDIX B — 27T U I T I O N , B O A R D , A N D R O O M R A T E S

TUITION RATESFull-Time

BOARD RATES

% IncreasePer academic year 2019 2020 2021 2022 from 2021

Undergraduate $48,604 $50,450 $52,448 $54,020 3.00%Graduate 45,168 46,524 47,920 49,358 3.00%MS Engineering Management 44,160 39,422 39,422 40,608 3.00%Management - Full time MBA 40,572 42,450 44,700 46,020 3.00%Management - Executive MBA 46,920 47,800 49,120 49,856 1.50%Management - MS Management 49,508 51,000 52,500 53,280 1.50%Management - MS Operations Research 54,522 55,770 48,510 49,962 3.00%Management - MSM - Healthcare 34,736 41,250 42,450 43,710 3.00%Management - MSM - Business Analytics 49,896 54,432 54,972 55,800 1.50% Management - Master of Accountancy 39,200 40,180 41,400 42,640 3.00%Management - MPOD 51,400 52,740 54,360 55,965 3.00% Management - DM/PhD/DSS 50,000 50,000 50,000 50,750 1.50%Management - DBA N/A N/A 52,000 52,780 1.50%MSASS - Graduate 44,500 45,500 46,500 47,700 2.60%Law - JD 51,900 53,500 55,100 56,700 2.90%Law - Master in Patent Practice 36,500 38,000 39,000 39,000 0.00%Law - Master in Financial Integrity 43,260 36,000 36,000 36,000 0.00%Law - Master in Financial Integrity - Residential N/A 53,500 55,100 56,700 2.90%Law - Master in Compliance and Risk Management N/A N/A N/A 39,000 Dental Medicine - DMD 69,770 72,420 75,136 77,916 3.70%Dental Medicine - Graduate 56,580 58,280 60,030 61,830 3.00%Nursing - Professional 49,704 51,192 52,728 54,312 3.00%Medicine - MD 63,262 65,476 67,440 68,788 2.00%Medicine - MS Anesthesia 48,048 49,490 51,468 53,270 3.50%Medicine - MS Physician Assistant Studies (By Cohort) 25,136 26,392 27,710 28,680 3.50%

% IncreasePer academic year 2019 2020 2021 2022 from 2021

17 meal swipes + $150 in CaseCash/week $6,360 $6,534 $6,730 $6,898 2.50%Unlimited meal swipes + $75 in CaseCash/week 6,708 6,892 6,892 7,064 2.50% 14 Kosher meal swipes/week 6,400 6,576 6,774 6,944 2.50%10 Kosher meal swipes/week 5,876 6,038 6,220 6,376 2.50%14 meal swipes + $200 CaseCash/week 6,108 6,276 6,464 6,626 2.50%10 meal swipes + $250 CaseCash/week 5,966 6,130 6,314 6,472 2.50%5 meal swipes + $150 CaseCash/week 3,132 3,218 3,314 3,396 2.50%7 meal swipes + $100 CaseCash/week 4,408 4,530 4,666 4,784 2.50%Greek Supplemental N/A 2,500 2,576 2,640 2.50%

Part-time rates may be found on the Bursar’s Office website: http://www.case.edu/studentaccounts/

28 — A PPEND IX B | C WRU OPERAT ING BUDGET T U I T I O N , B O A R D A N D R O O M R A T E S

% Increase 2018 2019 2020 2021 from 2021F I R S T A N D S E C O N D -Y E A R S T U D E N T S NORTH RESIDENTIAL VILLAGE Double/Triple $8,830 $9,080 $9,350 $9,584 2.50% Single 10,070 10,340 10,650 10,916 2.50%

SOUTH RESIDENTIAL VILLAGE Single 10,070 10,340 10,650 10,916 2.50%

TIPPIT/STALEY HOUSE SUITES Single 10,410 10,690 11,000 11,274 2.50% G R E E K Single 10,070 10,340 10,650 10,916 2.50% Double/Triple/Quad 8,830 9,080 9,350 9,584 2.50%

U P P E R - C L A S S S T U D E N T H O U S I N G VILLAGE @ 115 APARTMENTS 1 bedroom/Studio $12,500 $12,850 $13,240 $13,570 2.50% 2 and 3 bedroom 12,320 12,650 13,020 13,346 2.50% 4 and 5 bedroom 12,090 12,420 12,800 13,120 2.50% 6 and 7 bedroom 11,340 11,650 11,990 12,290 2.50% 9 bedroom 11,340 11,650 11,990 12,290 2.50%

THE TRIANGLE Studio/1 bedroom Single $12,500 $12,850 $13,240 $13,570 2.50% 1 bedroom Double 10,650 10,950 11,270 11,552 2.50% 2 bedroom Single 12,320 12,650 13,020 13,346 2.50% 2 bedroom Quad 10,650 10,950 11,270 11,552 2.50%

STEPHANIE TUBBS JONES HALL 1 bedroom $12,500 $12,850 $13,240 $13,570 2.50% 2 and 3 bedroom 12,090 12,420 12,800 13,120 2.50% 4 bedroom 11,826 12,150 12,530 12,844 2.50% 2 bedroom Townhouse 12,950 13,000 13,390 13,724 2.50%

PROPERTY MANAGEMENT APARTMENTS 1 bedroom $10,650 $10,950 $11,270 $11,552 2.50% 2 and 3 bedroom 10,650 10,950 11,270 11,552 2.50%

ROOM RATESPer academic year

CWRU OPERATING BUDGET | APPEN DIX C — 29R E V E N U E A N D E X P E N S E A L L O C A T I O N

REVENUE AND EXPENSE ALLOCATION PRACTICESIn thousands of dollars, unless otherwise noted

Case Western Reserve University (the “University”) operates under a decentralized structure with the philosophy that each management center is responsible for the planning and implementation of academic programs, revenue development and expense management. This concept is implemented with all revenue, except Undergraduate tuition revenue, and direct expense flowing to their respective management center. Because not all revenue or expense is directly developed by a school, allocation rules assign certain revenue and indirect expense for support services. The operating principle guiding these rules is that they fairly assign revenue or expense as a proxy for actual direct generation of revenue or occurrence of expense.

REVENUE ASSIGNEDTuitionA significant portion of Graduate and Professional Tuition is assigned to the schools in which the student is registered as a degree student. Credit hours taken in a school outside a student’s home school are assigned to the school teaching the credit hours for purposes of partial tuition revenue allocation.

The rate used to calculate the Tuition assignment will be $823 per credit hour in 2022, increasing at the same rate as the increase in Graduate Tuition revenue in subsequent years. Any program exemptions from this model must be approved through a formal process administered by the University Budget Committee.

Undergraduate Tuition is assigned to those schools that teach undergraduates, primarily the College of Arts and Sciences, the Case School of Engineering, Weatherhead School of Management and the Frances Payne Bolton School of Nursing. SAGES tuition is distributed to the units teaching those courses. Tuition revenue, net of unfunded financial aid, is distributed among the schools as follows: 85% is assigned based upon the proportion of undergraduate student credit hours taught by each school in 2019 and 2020; the remaining 15% is assigned based upon the proportion of baccalaureate majors of the graduating students in 2019 and 2020.

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Undergraduate tuition revenue is distributed using the average credit hours taught by the management center in 2019 and 2020 to calculate the percentage distribution. The majors of the graduating students is an average of 2019 and 2020.

Undergraduate tuition assignment is based on: 5,274 students for the academic year 29.3 credit hours/student 1,250 first-year students

Undergraduate Tuition Revenue $271,478 Less: Strategic Reserve (3,765)*Less: Unfunded Student Aid (132,252)*

UG Tuition Distributed to Schools $135,461 Regular Credit Hour Distribution $105,390 SAGES Credit Hour Distribution 9,752Majors Granted Distribution 20,319

Total UG Tuition Distribution $135,461 *100% assigned to UGEN

Regular SAGES Majors Total Credit Hour Credit Hour Granted Tuition Distribution Distribution Distribution DistributionCAS $ 57,535 $ 3,176 $ 7,009 $ 67,722 CSE 27,100 920 8,190 36,210 WSOM 11,510 510 2,704 14,724 MSASS 154 - - 154 LAW 1 81 - 82 DENT - 77 - 77 NURS 5,017 368 1,033 6,418 CSOM 4,073 134 1,383 5,590 UGEN - 4,486 - 4,484TOTAL $ 105,390 $ 9,752 $ 20,319 $ 135,461 Unfunded Aid 132,252 Strategic Reserve 3,765TOTAL UNDERGRADUATE TUITION REVENUE $ 271,478

Undergraduate Tuition Distribution and Total Revenue:

CWRU OPERATING BUDGET | APPEN DIX C — 31R E V E N U E A N D E X P E N S E A L L O C A T I O N

EndowmentEndowment funds are classified as belonging to a school or University General, and largely pooled for investment purposes. The amount or payout rate made available from the pool to operations each year is approved by the Trustees and considers not only current operational needs, but also long-term interests of intergenerational equity for future endowment beneficiaries. For 2022, the payout rate for the current year spending pool allocation is 4.70%. In addition, the Trustees approved a distribution of 0.8% ($12.5 million) for administrative expense to administer the endowment. Endowment revenue is allocated based on the market value of funds as of June 30, 2020. Revenue from new gifts and/or additions to existing gifts will be allocated one year after receipt. The revenue from a small number of endowment funds jointly shared by the schools teaching undergraduates is assigned based upon undergraduate credit hours taught. Funds Held by Others (FHBO) and Un-pooled funds are managed outside the University’s pooled investment and are not considered in the spending allocation. Income generated by FHBO and Un-pooled funds is sent to the University, then distributed to the appropriate management center(s).

Other RevenueAll other revenue is developed directly by the schools’ efforts and the schools receive full credit for sums received. Revenue generated for the University as a whole is attributed to University General. Revenue shown as restricted is only to be used by a particular school or for a particular purpose. Restricted revenue (restricted endowment, research and training grants, and restricted gifts) supports “funded” expense. In these instances, revenue is recognized as the matching expense is incurred. All other revenue is unrestricted and flows directly to the management center that generated the revenue. This revenue is recorded when received and supports a school’s unrestricted and “indirect” expense.

Estimated Estimated Unused Income Current Year Total 2022 Unused Income Beginning of Year Allocation FHBO Un-pooled Available Budget* End of YearCAS $8,638 $12,597 $2,891 $ - $24,126 16,054 $8,072 CSE 5,379 9,303 947 39 15,668 9,595 6,073 WSOM 2,312 3,498 299 1,469 7,578 4,557 3,021 MSASS 484 2,353 - - 2,837 2,287 550 LAW 2,041 4,242 656 131 7,070 5,602 1,468DENT 1,077 761 591 - 2,429 1,367 1,062 NURS 2,382 3,943 - - 6,325 4,642 1,683 CSOM 27,771 18,552 8,387 - 54,710 28,203 26,507 UGEN 9,602 13,537 1,800 - 24,939 14,076 10,863 TOTAL $59,685 $68,786 $15,571 $1,639 $145,682 $86,383 $59,299Supplemental Distribution - Administrative support 12,561 TOTAL ENDOWMENT REVENUE $ 98,944

* Includes temporarily restricted funds functioning as endowments and board-designated funds for LAW.

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INDIRECT EXPENSE ASSIGNEDEach school incurs operating expense that appears in the budget as “Direct Expense.” These expenditures include faculty, staff and student salaries, fringe benefits, graduate and professional student aid, and non-salary expense. In addition, each school is allocated a share of the expense to provide central and support services. These expenditures are categorized as Library, Student Services, Plant Services, Information Technology Services and University Services and are recorded in each budget summary as indirect expense.

Indirect Expense SimplificationBeginning in 2019, certain changes were implemented in Indirect Expense assigned. The change reduced the number of cost drivers to five and retained the current Library allocation and the current Utilities Non-salary cost allocation. In summary, Indirect Expense is allocated using the following cost drivers:

The data used to calculate the expense allocation represent a sub-set of existing cost drivers historically used to calculate the Indirect Expense allocation. The final Indirect Expense allocation, as shown below, is not reported in the Operating Statement as a single line item for each management center. For comparability with prior years, we have retained the former Indirect Expense allocation, as described within this appendix. Any reconciling differences between the historical Indirect Expense allocation and the below Indirect Expense allocation are reflected in the University Services cost pool on the Operating Statement.

Cost Driver Indirect Expense ProportionCurrent Utilities Non-salary Allocation Historical CalculationCurrent Library Allocation Historical Calculation

Undergraduate FTE 9.8% of Remaining Indirect ExpenseStudent Head Count 14.7% of Remaining Indirect ExpenseFaculty/Staff Count 2.9% of Remaining Indirect ExpenseSquare Footage 19.4% of Remaining Indirect ExpenseDirect Expense Percentage 31.7% of Remaining Indirect Expense

Indirect Expense Allocation

Undergraduate Student Faculty/Staff Square Direct Expense Utilities Library Total FTE Headcount Count Footage Percentage Non-salary Allocation AllocationCAS $8,274 $6,908 $786 $6,358 $6,365 $2,428 $3,159 $ 34,278 CSE 4,510 4,641 486 6,441 6,536 3,094 2,099 27,807 WSOM 1,832 3,436 260 2,010 3,616 647 1,498 13,299 MSASS 16 874 251 687 2,121 216 580 4,744 LAW 11 1,362 131 1,312 2,742 378 1,951 7,887 DENT 10 1,220 251 1,666 2,415 945 508 7,015 NURS 762 1,552 288 882 2,198 482 670 6,834 CSOM 660 4,467 2,366 13,521 27,565 12,763 2,523 63,865 UGEN 533 316 - - - - 1,318 2,168 TOTAL 16,608 24,776 4,819 32,877 53,558 20,953 14,306 167,897 HEC Expense 9,116 Revenue Offsets & COVID-19 Costs 39,341 TOTAL INDIRECT EXPENSE ALLOCATION $216,354

CWRU OPERATING BUDGET | APPEN DIX C — 33R E V E N U E A N D E X P E N S E A L L O C A T I O N

LibraryLibrary includes the operation of the University Library, Health Science Library, Law Library, and the MSASS Library. 75% of the University Library expense is distributed to the core colleges – CAS, CSE, WSOM and a small portion to NURS to recognize support of the BSN program. The remaining 25% is distributed to the other schools. 75% of the Health Science Library expense is distributed to CSOM, DENT, and NURS, with 25% assigned to the other schools. MSASS supports 75% of its Library with the balance distributed to the other schools. LAW pays 100% of its own Library’s expense; however, its share of the other Library expense is calculated without the inclusion of estimated materials expense in those Libraries because LAW covers the full expense for its own extensive materials collection. The allocation uses un-weighted student, faculty, and staff counts.

Student ServicesStudent Services include the expense associated with the following operations: Enrollment Management, Undergraduate Studies, Financial Aid, Registrar, Student Affairs, Career Planning, Educational Support Services, Thwing Center, International Students, Education Abroad, Minority Programs, Physical Education and Athletics, UCITE, SOURCE and the Dean of Graduate Studies. The expense associated with the SAGES program (net of the tuition generated by non-school based lecturers) is included in this category and is allocated on the basis of SAGES credit hours taught. direct expense methodology. The student numbers used in the assignment are an average of the 2019 and 2020 fall semester enrollment. The Student Services expense for each management center is determined by student and faculty/staff head count.

Library Expense Assigned, by Management Center: Health Total University Science MSASS Law Library Library Library Library Library AllocationCAS $2,910 $211 $38 $- $3,159 CSE 1,934 140 25 - 2,099 WSOM 1,380 100 18 - 1,498 MSASS 202 33 345 - 580 LAW 158 55 8 1,730 1,951 DENT 259 242 7 - 508 NURS 429 232 9 - 670 CSOM 1,286 1,200 37 - 2,523 UGEN - - 86 - 86 TOTAL 8,558 2,213 573 1,730 $ 13,074 Unallocated Library Expense (100% to UGEN): Endowment Support 1,202 Revenue Offsets 346 UGEN Strategic Savings (316) TOTAL LIBRARY $8,558 $2,213 $573 $1,730 $14,306

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Most Student Services expense is assigned on the basis of the students benefiting from the program or service. Several programs are believed to have an overall University purpose and are assigned using the two-year average direct expense methodology. The student numbers used in the assignment are an average of the 2019 and 2020 fall semester enrollment. The Student Services expense for each management center is determined by student and faculty/staff head count.

*Percentage distribution for undergraduate full-time equivalency (FTE) and headcount uses two years’ of credit hour data and is equal to the 2022 percentage distribution for net undergraduate tuition in schools. Graduate and Professional numbers are based on the Fall Semester enrollment statistics.

Total Undergraduate Undergraduate Graduate Graduate Professional Professional Head FTE * Headcount * Full-Time Part-Time Full-Time Part-Time CountCAS 2,646 2,694 457 31 - - 3,182CSE 1,442 1,468 585 105 20 - 2,178WSOM 585 596 54 6 582 207 1,445MSASS 5 6 27 2 413 71 519LAW 4 4 4 - - 569 32 605DENT 3 3 109 - 291 - 403NURS 243 248 39 2 246 163 698CSOM 211 215 962 231 897 - 2,305UGEN 170 173 - - - - 173TOTAL 5,309 5,407 2,233 377 3,018 473 11,508

Graduate Graduate/ Weighted Student Student Professional Faculty/ Average Undergraduate Head Head Head University Staff Student FTE Count Count Count Services SAGES Count Headcount TotalCAS $7,102 $826 $257 $42 $39 $(100) $55 $516 $8,737CSE 3,870 555 351 54 40 (20) 34 325 5,209WSOM 1,572 411 33 82 22 (15) 18 217 2,340MSASS 14 104 17 32 13 - 18 47 245 LAW 10 163 1 51 17 (4) 9 72 319DENT 8 145 56 46 15 (7) 18 65 346NURS 654 185 24 39 13 (11) 20 97 1,021CSOM 567 534 542 158 169 (2) 164 210 2,342UGEN 457 38 - - - (218) - 29 306 TOTAL $14,254 $2,961 $1,281 $504 $328 $ (377) $336 $1,578 $20,865

Unallocated Student Services (100% to UGEN)* 9,058TOTAL STUDENT SERVICES $29,923

*Includes 100% of the UGEN Strategic Savings Plan.

Note: Graduate and Professional numbers are based on the Fall Semester enrollment statistics.

Student Numbers used for the 2022 Budget, based on 2019 and 2020 fall semester average enrollment:

2022 Student Services Expense Assigned, by Allocation Methodology:

CWRU OPERATING BUDGET | APPEN DIX C — 35R E V E N U E A N D E X P E N S E A L L O C A T I O N

Plant ServicesPlant Services include the expense for utilities (electricity, steam/gas, water/sewer, chilled water, and other services) and plant operations (custodial, building maintenance, security, and environmental health and safety). Utilities expense is assigned based on a weighted utilities rate. The rate is adjusted for the budget year to account for estimated changes in utility rates. An adjusted cost per square foot for utilities is calculated and multiplied by the gross square footage in each building.

Non-utility expense is assigned based upon the average remaining operating cost for all academic buildings in the University. The average cost per square foot is multiplied by the number of gross square feet assigned to each school or function. Utility and non-utility expense for parts of buildings used for indirect or support services (e.g. libraries, student services, or University administrative services), are first allocated to the support service and then reallocated through the appropriate basis.

Category Allocation Methodology Direct Plant Utilities and Space Charges Administrative Space University Service (Two-Year Average Direct Expense) University Library Total University Library Allocation Health Science Library Total Health Science Library Allocation Student Services Student Service Allocation Excluding Physical Education and SAGES Allocation University Center Total Headccount Athletic Space Total Physical Education Space Allocation Shared Classroom Undergraduate FTE Ratio SAGES Two-Year Average SAGES Credit Hours Taught Waste Removal Fixed Amount

Total Health Square % of Direct Administrative University Science Footage Total Plant Space Library Library CAS 591,143 19.4% $7,367 $665 $678 $143 CSE 598,890 19.6% 8,238 683 368 78 WSOM 186,872 6.1% 2,238 378 272 57 MSASS 60,066 2.0% 778 222 44 21 LAW 122,013 4.0% 1,457 287 27 12 DENT 154,952 5.1% 3,152 252 48 121 NURS 81,998 2.7% 1,720 230 99 139 CSOM 1,257,158 41.2% 25,503 2,874 285 714 UGEN - 0.0% - - - - TOTAL 3,053,092 100.0% $50,453 $5,591 $1,821 $1,285

Plant Services costs are distributed using ten separate allocation methodologies:

Plant Services Allocation:

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The Plant Services expense for each school or area is determined by each building’s utilities rate and square footage. Utility expense is assigned based on a weighted utilities rate. The estimated annual expense is assigned based on square footage. The cost for Plant Services other than utilities is $8.845 per gross square foot. This expense is assigned based upon square footage.

Information Technology Services (ITS)Information Technology Services include the expense associated with establishing, maintaining, and providing services through the campus network, central information processing, research and academic computing, as well as the operations of the ITS division and the ERP Finance office. ITS expense is separated into four cost pools, each with its own distribution formula. The first pool, Core Technology, covers core network and infrastructure equipment, wiring and maintenance. It includes the debt service related to the deployment of this technology and is distributed on a square footage allocation, including a school’s share of indirect space such as Library and Student Services space.

The Instructional component of the ITS budget is allocated using the two-year average student count. It includes support for academic technologies including Blackboard and Courseware lecture capture, the Student Information System, online learning programs and MOOCs, Active Learning Faculty Fellows, instructional design and other curriculum support. This component also includes the design, upgrade and operation of Technology Enhanced Classrooms and Active Learning Spaces, as well as the related debt service.

The expense associated with Core Administrative systems includes providing enterprise applications such as the HCM system, ERP Financial systems, Web Content Management, Identity Management and the software center. This component is distributed using the University Services distribution (a percentage of direct expense) and also includes related debt service on ERP system upgrades.

Waste Student Athletic Shared SAGES Removal Total Plant Services Space Classroom Allocation (Fixed) AllocationCAS $578 $1,160 $288 $26 $46 $10,951CSE 344 662 154 5 46 10,578WSOM 152 324 63 4 - 3,488MSASS 15 15 1 - - 1,126LAW 20 53 - 1 - 1,857DENT 22 55 - 2 - 3,652NURS 66 150 27 3 - 2,434CSOM 148 362 24 - 373 30,283UGEN 34 69 19 57 (465) (286)TOTAL $1,379 $2,850 $576 $98 - $64,083Unallocated Plant (100% to UGEN)* 4,235TOTAL PLANT $68,318

* Includes 100% of the UGEN Strategic Savings Plan.

CWRU OPERATING BUDGET | APPEN DIX C — 37R E V E N U E A N D E X P E N S E A L L O C A T I O N

The remaining cost pool, referred to as Infrastructure, covers basic technology services including security, internet, email, servers, storage, voice and video communications, Help Desk and other network services. These services also include the support of research computing systems such as the High Performance Computing Cluster and the Secured Research Environment, as well as the related debt service. This expense is distributed using a faculty/staff/student count and utilizes the same counts used for the Library distribution. Information Technology Costs Assigned, by cost pool:

University Services University Services include the general administrative expense associated with the following operations: Office of the President, Office of the Provost, International Affairs, Division of Finance, Office of Administration, Development and University Relations, Planning and Institutional Research, General Counsel, Technology Transfer and Research Administration and the Office of Inclusion, Diversity and Equal Opportunity. In addition, insurance expense, auditing, and other expense general to the operations of the University and not related specifically to programs of a particular school or function are charged in University Services to be allocated using the percentage of direct expense methodology. A two-year average, using the second and third years preceding the budget year, is used in the calculation; e.g. for Budget 2022, the average direct expense for 2019 and 2020. It should be noted that for this calculation, R&T expenditures based in the Cleveland Clinic Lerner College of Medicine (CCLCM), tuition expenditures associated with the CCLCM and expenditures related to CSOM off-campus locations have been deducted from the CSOM expense base. Further, the cost of Dental kits purchased and re-sold to students has been deducted from the DENT expense base. Lastly, third party servicing expense for CSE and MSASS distance learning programs have been deducted from the respective expense base.

Certain University Services expense is not allocated to the schools because there are revenue streams that support the expense. This includes the portion of Development, University Relations and other areas expense covered by the administrative support distribution from the endowment.

Core Information Technology Instructional Administrative Infrastructure Services CAS $522 $942 $728 $4,170 $6,362CSE 500 626 748 2,727 4,601WSOM 180 427 414 1,778 2,799MSASS 61 103 243 777 1,184LAW 105 182 314 759 1,360DENT 132 138 276 1,372 1,918NURS 85 175 251 1,233 1,744CSOM 1,089 633 3,146 4,430 9,298UGEN 1 51 - 214 266TOTAL $2,675 $3,277 $6,120 $17,460 $29,532UGEN Strategic Savings Plan (100% to UGEN) (105)TOTAL INFORMATION TECHNOLOGY SERVICES $29,427

38 — A PPEND IX C | C WRU OPERAT ING BUDGET R E V E N U E A N D E X P E N S E A L L O C A T I O N

University Services expense is allocated based on the percentage of direct expense averaged over a two-year period.

HEALTH EDUCATION CAMPUS Operating Expense budgeted to be incurred for the Health Education Campus (HEC) is purposely not included in the calculated portion of the simplified allocation changes for FY 2022. HEC operating costs included in the overall total for Indirect Expense are budgeted to be $9.116 million and are concentrated in the Plant, ITS and University Services categories of Indirect Expense.

USE OF RETAINED SURPLUSESSchools and auxiliaries are permitted to retain the excess of revenue over expense in a reserve account.Expenditures against the reserve account require the approval of the Provost and Chief Financial Officer.As all schools and auxiliaries are expected to operate in a financial equilibrium over the long run, current year losses must be charged against the reserve account.

Average % of University 2019 2020 2019-2020 Total ServicesCAS $77,889 $74,150 $ 76,020 11.9% $ 5,069CSE 79,218 76,904 78,061 12.2% 5,320 WSOM 44,500 41,861 43,181 6.8% 3,174 MSASS 25,531 25,122 25,327 4.0% 1,609 LAW 33,152 32,331 32,742 5.1% 2,400 DENT 29,538 28,164 28,851 4.5% 2,679NURS 26,032 26,475 26,254 4.1% 2,445CSOM 328,032 330,409 329,221 51.5% 22,121 UGEN - - - 0.0% -TOTAL $643,892 $635,416 $639,654 100.0% $ 44,817Unallocated University Services (100% to UGEN)* 29,563TOTAL UNIVERSITY SERVICES $74,380

Direct Expense (adjusted)

*Includes 100% of the UGEN Strategic Savings Plan

A D D I T I O N A L I N F O R M A T I O N CWRU OPERATING BUDGET | APPENDIX D — 39

ADDITIONAL INFORMATIONCOVID-19 PANDEMICAdditional costs related to the COVID-19 pandemic are expected in 2022. Although an estimate, $10.0 M is included in University Services for anticipated pandemic costs, this amount has not been allocated to Management Centers on a budget basis. Subsequent to the 2022 year end close process the actual realized pandemic costs will be allocated to each management center.

AUXILIARIESAuxiliary Services Assessment: Historically, Auxiliary Services has been assessed a fee of 3% of total revenue. The fee is used to decrease Indirect Expense allocated from UGEN. In 2022, an additional fee of 3% of housing and dining revenue is assessed on Auxiliary Services in the event these functions produce a surplus. The proceeds remain in UGEN for Undergraduate investment.

HEALTH EDUCATION CAMPUSHealth Education Campus: Operating Expense budgeted to be incurred for the new Health Education Campus (HEC) is segregated from the Indirect Cost allocation calculations. HEC operating expense is directly charged to DENT, NURS, and CSOM and allocated within the three schools based on estimated square footage. HEC operating costs included in the overall total for Indirect Expense are budgeted to be $9.116 million and are largely concentrated in the Plant, ITS and University Services categories of Indirect Expense.

PLANTVacated Space Plant Charge: DENT and NURS vacated certain areas within the campus during 2020. The direct plant allocation associated with the vacancies was eliminated from the Plant expense allocation. Traditionally, vacated space would be added to the Administrative Space Category and allocated based on a two year average of Direct Expense. However, the allocation did not occur in 2022. The expense associated with the vacated space remained in UGEN.

UNDERGRADUATE TUITIONUndergraduate Tuition Contingency: An Undergraduate Tuition Contingency of $3,000 is reflected in the Undergraduate Tuition allocation in 2022. If realized at year end, the contingency will be utilized by the provost for strategic initiatives related to Undergraduate serving management centers.

Full detailed schedules for revenue and expense allocation may be found at:www.case.edu/financialplanning/operating-budget

case.edu/financialplanning